The moment we’ve all been waiting for! The official details, from the government, regarding the second stimulus payment that has been under discussion for months signed and released Monday, December 21, 2020. Many Americans have been waiting for a second stimulus package from the government like it was the recently released Playstation 5.
The pandemic of 2020 has been hard, financially and mentally, for a lot of us. Some people were laid off from their jobs due to COVID19 and they have not been able to secure new income to replace the lost income. The first stimulus payment was $1200 per person and $500 per dependent (with a cap on how many dependents they would pay for), it was rolled out in the spring as apart of the CARES Act.
As of Monday the 21st, the amount signed off under the COVID Relief Bill is expected to be $600 per individual and $600 per dependent under 17 years of age for up to four dependents. Six …hundred …dollars.
Let’s say your rent is $1000, you pay your $400 for car note and car insurance, and you spend usually $250 on food and gas monthly. There’s way more monthly expense we can add, but that alone is $1650. Let’s say you got laid off March, you were unable to receive the pandemic unemployment benefits for whatever reason, and you have not found a new source of income since then. The means you could be potentially, 8 months behind financially if you don’t have a substantial amount of savings or a strong financial support system in place. That’s a potential $13,200 debt at minimum.
Unlike the first stimulus, not everyone will receive the second stimulus. There are some rules and limitations surrounding who will receive this long awaited payout. Let’s be honest, not everyone receive the first stimulus either. The Internal Revenue Service (IRS) has said the payment not received you will be able to claim via the 2021 taxes.
Second Stimulus qualifications:
- Individual Annual Gross Income (AGI) of $75,000 or less (individuals with an AGI more than $99,000 will not receive payouts and those less will receive a reduced payment)
- $112,500 AGI as head of household
- $150,000 AGI as Joint Filing Married Couples (couples with AGI more than $174,000 will not received payouts and those less will receive reduced amount)
The second stimulus is expected to be delivered the same way the first stimulus was delivered, the way your 2020 tax return was delivered. By direct deposit or by mail, if any other method than direct deposit was used on your 2020 tax return. The direct deposit payments will be rolled out first and the mailed payments can take a number of weeks maybe months.
As of Tuesday Dec. 22, 2020, President Donald Trump might potentially veto the COVID Relief Bill, insisting in an online video that lawmakers need to raise the stimulus amount from $600 to $2000 considering it “ridiculously low”. As of now the COVID Relief Bill is on hold, changing the bill requires unanimous consent from the lawmakers.
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